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3 years ago

Let’s assume a required reserve ratio of 10 percent.

Business

1 answer:

Furkat [3]3 years ago

5 0

Answer:

The answer is 72.9 dollars.

Explanation:

The reserve ratio of 10% means that bank must keep 10% percent of amount deposited in bank to meet emergency payments and can lend the remaining 90% to other banks. So the second bank can lend 81 dollars that is 90% of 81 dollars. As per this rule second bank has 72.9 dollars (90% of 81) to lend.

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On January 1, 2019, Cullumber Company had $1,000,000 of common stock outstanding that was issued at par. It also had retained ea

Flauer [41]

Answer:

<em>a. Par value is $10, and market price is $19. b. Par value is $5, and market price is $20.</em>

Explanation:

4 0

2 years ago

What term is used to describe an account that a bond trustee manages for the sole purpose of redeeming bonds early?

sasho [114]

Answer:

Sinking fund

Explanation:

Sinking fund is a term used to describe an account that a bind trustee managed for the sole purpose of redeeming bonds early.

sinking fund: This can be seen as a type of fund that is created for the sole aim of repaying debt. It is created for the purpose of making debt easier to pay off.

The sinking fund account owner set aside a particular amount of money for a specific purpose.

Sinking funds is used to entice investors because in the case of default or bankruptcy, sinking fund will still allow investors to get their investment back. it is also a means used by corporations for bonds and deposits money to buy back issued bonds or parts of bonds before the maturity date arrives.

4 0

2 years ago

Read 2 more answers

g- Tom and John are excited to purchase a new house. Based on where they live they can find a good house for $800,000. They need

Aleksandr [31]

Answer: 5.9 years

Explanation:

The amount they need to save is the down payment for the house:

= 800,000 * 15%

= $120,000

They are saving a total of:

= 1,050 + 490

= $1,540 per month

Interest is 3.4%/12 as it is monthly.

On excel, insert the details as shown in the attachment.

You should get 70.5 months.

In years this is:

= 70.5/12

= 5.9 years

3 0

3 years ago

Eaton Electronics uses a periodic inventory system.

aev [14]

The cost of ending inventory of Eaton Electronics on June 30 is $13,600.

<h3>What is the LIFO method?</h3>

The LIFO method values the cost of goods sold based on the assumption that goods sold are from the latest stock.

For example, using LIFO, Easton would have the two TVs sold based on the cost of the May Purchases instead of specific identification.

<h3>Data and Calculations:</h3>

Beginning inventory (2 x $1,500) = $3,000

April Purchases (4 x $1,450) = $5,800

May Purchases (5 x $1,600)= $8,000

Cost of goods available for sale = $16,800

Cost of goods sold (2 x $1,600) = $3,200

Ending inventory = $13,600 ($16,800 - $3,200)

Thus, the cost of ending inventory is $13,600.

Learn more about the LIFO method at brainly.com/question/10026597

#SPJ1

6 0

2 years ago

Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupo

kodGreya [7K]

Answer:

5.4%

Explanation:

Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $900.90, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation

Face value of bond = coupon amount / interest rate

1000 = 80 / 8%

Therefore 900.9 = 80 / revised interest rate

multiply both sides by the 'revised interest rate

revised interest rate x 900.9 = 80

Hence, revised interest rate = 80 / 900.9 = 9%

Secondly if the company’s tax rate is 40%, the component cost of debt for use in the WACC calculation = kd (1 - t)

where:

kd = Cost of debt

t = tax rate

Therefore cost of debt for use in the WACC calculation = 9% (1-0.4) = 5.4%

4 0

2 years ago